Single Dealer Platforms best positioned to dominate FX market (Celent Research)


New research from Celent confirms Caplin’s long-held view that Single Dealer Platforms (SDPs) will dominate the FX markets.

Contrary to those predicting that Dodd Frank and Mifid II would signal the death of SDPs, Caplin’s position as outlined in our recent white paper, SDPs in a cleared world is that SDPs will remain the dominant ‘relationship channel of choice’  for clients.

Growth in SDPs continues to outpace mutli-dealer platforms, as global ‘flow monsters‘, and regional banks continue to invest heavily to upgrade their client facing SDPs, as they seek to better differentiate their offerings, and provide more client centric ‘workflow’ solutions that will help them retain and grow client relationship flows.

Bank of England FX Survey Data ($bln/day)

According to the Celent research:

“The growth of SDP volumes is guaranteed, but the success of individual SDPs is not,”

“Unlike the execution-centric approach of the MDPs, the SDP approach will be more client-centric and involve easy end-to-end trading,”

Coverage of the report by EuroMoneyFXNews, picks up on themes previously highlighted by Caplin, including:

  • Leading banks increasing their investment in SDPs as their primary means of client transactions
  • SDPs seeking to better integrate workflow solutions
  • Pre-trade enhancements, better post-trade offerings
  • Client access through multiple channels, including voice (see Caplin-BT collaboration on combining voice & etrading)

7 Responses

  1. [...] performance comes against a backdrop of research from the likes of Celent that Single Dealer Platforms best positioned to dominate FX market,  and data from the Bank of England (data link here) showing SDP volumes still outpacing MDP [...]

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  3. [...] example, according to Bank of England data cited by research and consulting firm Celent, SDPs have overturned rapidly, growing MDP volumes from several years ago to post 54% of all FX [...]

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  7. […] SDP’s become best positioned to dominate global FX markets – the ratio of FX flows being executed via SDPs compared to MDPs reached 134%, compared to […]

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